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ARIZONA STATE LEGISLATURE
Forty-ninth Legislature – Second Regular Session
SENATE GOVERNMENT INSTITUTIONS AND
HOUSE OF REPRESENTATIVES MILITARY AFFAIRS AND PUBLIC SAFETY
COMMITTEE OF REFERENCE FOR THE SUNSET REVIEW OF THE
ARIZONA AEROSPACE AND DEFENSE COMMISSION
Minutes of Interim Meeting
House Hearing Room 3 – 1:30 p.m.
Co-Chairman Weiers called the meeting to order at 1:33 p.m. and attendance was noted by the secretary.
Representative David Gowan
Representative Barbara McGuire
Representative Carl Seel
Representative Jerry Weiers, Co-Chairman
Senator Chuck Gray
Senator Jay Tibshraeny, Co-Chairman
PRESENTATION:
Dr. Vicki Panhuise, Chairman, Arizona Aerospace and Defense Commission, called Members’ attention to the packet on the Arizona Aerospace and Defense Commission, including The Economic Impact of Aerospace and Defense Firms on the State of Arizona (Attachment 1) and Arizona’s Aerospace & Defense Commission Strategic Plan (Attachment 2). A slide presentation was given on the background of the Commission (Attachment 3). She related that she has been Chairman since appointed by the Governor in 2008. The Commission consists of nine members, meets monthly and has an active website where all information and public hearing information is available.
The focus areas of the Commission are to improve Arizona’s business environment, create a robust pipeline of business and entrepreneurial opportunities to fuel growth, build Arizona’s research competitiveness and attract, educate, retain and retrain Arizona’s skilled workforce.
She reviewed the 2010 results of the Commission:
· Completed Aerospace & Defense Economic Impact Study -- In 2009, the Arizona aerospace and defense (A&D) industry accounted for 93,800 jobs, had labor income of $6.9 billion and gross state product of $8.8 billion, so the industry continues to have a significant impact for Arizona.
· Developed Aerospace & Defense Value Proposition -- Five focus groups were done in different areas of Arizona to determine why companies stay in the state, why they leave the state and what it would take to retain or attract them back to the state. The Value Proposition will continue to be used to build marketing and promote Arizona for aerospace and defense growth.
· Participated in the Arizona Commerce Authority Aerospace & Defense Growth Sector Public Hearing and Recommended Development.
Dr. Panhuise advised that the Commission has had difficulty getting additional Commissioners. There are people who have put in their applications and who have been recommended for the Commission, but they have been awaiting confirmation for 18 months. She asked Members for a faster confirmation cycle and more help on the Commission so it can be more proactive. In addition she requested legislative participation in Commission meetings. She welcomed anyone to visit and ask questions. In summary, she related that the Commission is very active with a clear agenda and participation, there is public participation in all meetings and the Commission had key results in 2010 with an agenda planned for 2011.
In response to questions posed before the meeting, she advised that the Commission was not directly involved with the F-35 Luke Air Force Base decision; however, it is instrumental in providing the roadmap for A&D, and the military is a big part of the Commission’s agenda. In reference to the question about research agreements with the universities, she related that statute does not authorize the Commission to review or oversee research agreements. The Commission was not set up, nor does it have the budget, to implement programs; it is an advisory board for statewide aerospace and defense activity.
In response to Representative Fleming’s query, Dr. Panhuise referred to page 3 of the Economic Impact study (Attachment 1) and clarified that the specific A&D industry accounts for 93,800 jobs, while the A&D companies employ 39,400 individuals with a total payroll of $4.3 billion.
Senator Burton Cahill asked whether it is appropriate for this Committee to recommend that the Senate make the confirmation process a priority in the coming Session.
Representative Seel questioned whether the Commission has any funding requirements it wishes to request. Dr. Panhuise revealed that the Commission members serve voluntarily.
Representative Seel asked whether more companies would relocate to the state if there were better tax incentives. Dr. Panhuise answered that any legislative incentives would be helpful; however, she said that what companies really need is capital, especially small businesses, which need capital to invest, to hire people and to build a business. She pointed out that in this economic environment, banks are reluctant to provide loans. She noted that there are some recommendations before the Commerce Authority Board, such as extending the investment tax and expanding the enterprise zones.
Representative Gowan moved that the Committee recommend that the Arizona Aerospace and Defense Commission be continued for five years. The motion carried by a roll call vote of 6-0-0-2 (Attachment 4).
Co-Chairman Weiers explained that in the past, recommendations were for ten-year sunset reviews; however, since Members might not be in the Legislature for ten years, it is felt that a five-year sunset review is more appropriate. Dr. Panhuise agreed that is a prudent action. She noted that Commission members are very hard-working and put a lot of effort into this activity, and she requested that the Legislature send a letter to them thanking them for their hard work.
Without objection, the meeting adjourned at 1:50 p.m.
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Joanne Bell, Committee Secretary
December 20, 2010
(Original minutes, attachments and audio on file in the Chief Clerk’s Office; video archives available at http://www.azleg.gov)
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COR - SENATE GOV AND
HOUSE MAPS
2
December 15, 2010
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